No.

If the debt is $1mil, you would only get 80% of this = $800,000 less your current loan of $300,000. So that would be $500,000.

There are also many factors that the lender will want to take into account such as your income (you will have be be able to afford the repayemnts on $800,000) and what you want the money for.

Terryw
Discover Home Loans
North Sydney
[email protected]

Without considering other security, it may be possible to get 80% on a commercial property if it is a good deal in a good location. But generally 605 to 75% LVR.

Valuations would be done using comparable sales (if available) and would incorporate other things such as leased amount, length of lease left, any options to renew etc. Much more complicated and more costly than residental property valuations.

There is one prouct available with Citibank where they will lend based on the rental income from the security proeprty only. max 60% LVR.

Terryw
Discover Home Loans
North Sydney
[email protected]

One way would be for the Trust to be shareholder in the new company (the business). If anything goes wrong, the shareholders could not be held to be liable. Dividends would then flow on into the trust.

It is not good for the trust to run a business as if anything goes wrong all the assets of the trust could be at risk.

Better check with an accountant.

Terryw
Discover Home Loans
North Sydney
[email protected]

Shushar

Yes it is true. I had a unit myself off the plan and tried to onsell it beofre completion. No agent was interested in it. I ended ended up just rescinding the contract and walked away from the deal because of delays and lack of growth. (No penalty for me as I legally got out of the contract as it went over the sunset date)

Terryw
Discover Home Loans
North Sydney
[email protected]

$0

Terryw
Discover Home Loans
North Sydney
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It is a personal choice really.

However, if you currently have a loan on your home, why not divert extra payaments into this rather than paying off a investment property.

BTW would it be wise to purchase such a property?

Terryw
Discover Home Loans
North Sydney
[email protected]

What percentage of rent that banks take into account can be misleading. SOme give with one hand and take with the other. In general I have found Westpac and ING to be pretty generous overall.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

Not many lenders will refinance up to 95%, 90% is generally the maximum.

Theoretically as long as your overall LVR is 95% or less and you have the income to service the loans then it may be OK. So add up the values of all thre properties and the existing loans together with what you need to finance the new purchase and see what you get.

I get $500,000 plus $200,000 = $700,000 in value
loans $415,000 plus $210,000 = $625,000 in loans
The overall LVR would be 89%.

So yes it would be possible to borrow this amount, but you still must have the income to service the loan.

Terryw
Discover Home Loans
North Sydney
[email protected]

As a broker, I have been seeing htis since last year. I had one young client who purchase off the plan in Sydney 2 years ago. There was no growth in value at all. The person did not even have a deposit and had used a deposit bond. because of her low wage she couldn’t qualify for a loan. It was also in an area that was hard to get finance for.

The last I heard was that her mum was writing to the developer to say she didn’t want the unit anymore. They were told that it wasn’t as simple as that and they had better get some legal advice. I don’t know what happend to them or how htey got on.

Terryw
Discover Home Loans
North Sydney
[email protected]

The ATO is looking to grab as much tax as possible.

But what is the office of State Revenue thinking? I beleive the OSR (or Vic equivalent) is the agency that collects stamp duty-which is a state tax and has nothing to do with the ATO. So is it the OSR taht your solicitors were referring to? If not, maybe they were talking about CGT? Or I may be wrong in my assumptions.

If you are to be charged stamp duty, what would the rate be classified on? ie the option price or the value of the property?

Terryw
Discover Home Loans
North Sydney
[email protected]